Softbank company makes acquisitions...
Asia Online Buys 3 Australian, NZ Cos; Eyes US Listing
By GRAHAM MORGAN
SYDNEY -- The chief executive of Internet company Asia Online Ltd., Kevin Randolph, said Monday the company has bought three Internet service providers in Australia and New Zealand.
In an interview with Dow Jones Newswires, Randolph also said he would like to eventually list Asia Online in the U.S. and review local market listings in the Asia-Pacific region.
Asia Online sells a variety of Internet-related services including dial-up access, web development and e-commerce. It operates out of the U.S., Hong Kong and the Philippines.
Randolph said the company, which counts J.P. Morgan & Co. (JPM) and Softbank Technology Ventures, part of Softbank Corp. (J.SFT), among its investors, wants to expand rapidly in the region and has done just that in Australia and New Zealand.
Asia Online has bought small private Internet service providers Internet Access Australia, based in Melbourne, and InterACT, based in Canberra. Across the Tasman Sea in New Zealand, it has bought Internet Company of New Zealand, Randolph said.
He didn't disclose the cost of the acquisitions but said Asia Online plans to invest at least a further $30 million in Australia by the end of the year, and has "several additional investments" on the boil.
Australia and New Zealand's high levels of Internet penetration were what attracted Randolph. Independent research company Ovum expects penetration in Australia to reach 33% in 2005 from 12% in 1998.
"We can anticipate what's going to happen based on seeing other markets, like the U.S., evolve," he said, referring to the Internet's growth potential in Australia and New Zealand.
Looking ahead, Randolph said he would like to publicly list Asia Online shares in the U.S., so that investors in the company can recoup their contributions.
Listings in other countries where Asia Online operates, could also be down the track, he added.
-By Graham Morgan; 61-8235-2962
graham.morgan@ dowjones.com
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